Lam Research Corporation stock research
FY2023 Q4
Lam Research (LRCX) Gross Margin — Quarter Ended Jun 25, 2023
Revenue and gross profit both decreased from the prior quarter, but gross margin improved as cost of revenue declined more sharply. Compared to the same quarter one year earlier, revenue and gross profit were lower while gross margin remained broadly stable.
Gross margin takeaway
Quarter ended Jun 25, 2023 · FY2023 Q4
Revenue and gross profit both decreased from the prior quarter, but gross margin improved as cost of revenue declined more sharply. Compared to the same quarter one year earlier, revenue and gross profit were lower while gross margin remained broadly stable.
- The primary driver of the gross margin improvement was a proportionally larger reduction in cost of revenue relative to the decline in revenue from the prior quarter.
- Sequentially, gross margin strengthened from the prior quarter. On a year-over-year basis, gross margin was essentially unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
45.5%
Gross profit
$1.5B
Revenue
$3.2B
Cost of revenue
$1.7B
Quarter-over-quarter change
+4.0 pts
Year-over-year change
+0.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 26, 2023 | $3.9B | $1.6B | $2.3B | 41.5% |
| Jun 25, 2023 | $3.2B | $1.5B | $1.7B | 45.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 26, 2023
+4.0 pts
Year-over-year change
Jun 26, 2022
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the gross margin improvement was a proportionally larger reduction in cost of revenue relative to the decline in revenue from the prior quarter.
Sequentially, gross margin strengthened from the prior quarter. On a year-over-year basis, gross margin was essentially unchanged.
Monitor the relationship between revenue and cost of revenue in future quarters to assess whether the cost reduction trend persists.